My New Blog

It was interesting to see the media jumping all over the increase in home sales over the last 7 months.

Of course it did, sales always increase in spring and summer. It has been this was for years in good and bad markets.

Now overall our sales are up dramatically here in California which is good. Sales have slowed in the winter months but we are up overall. Finally...

Usually thru the new year people slow down with families and traveling. Things traditionally pick up again starting in Feburary and accelerate from there until about October.

We should get a great boost in sales with the extension of the Fed's tax incentive extension until April 2010.

Prices even had a bit of an upswing in 2009, so it will be interesting to see how it pans out in 2010. I hope the worst is behind us, but if its not, buying or locking in a low rate now still makes the most sense.

Once rates finally do go up, the cost of owning a home will be far higher than a tiny drop in price.

So if you are looking to buy or refi, let us know if we can answer any questions for you.

In December 2009 rates move upward. We have been expecting this for some time now with the volatility in the bond market. Now even if rates move back down at the beginning of this year, there is something to be learned.

--Rates have been at historic lows from 2008 all through 2009.

Due to the Federal Reserve Board lowering short term rates and providing massive amounts of liquidity to the system in the face of the credit crisis. Remember the Fed controls short-term rates. Long-term rates such as rates on home loans are subject to the whims of the markets. As long as the economic news was bad, and it was for most of 2009, the markets stayed in line. Now as the news starts getting better, there is less of a need for the markets to stay in line, and a great chance of rate increases.

Remember, when rates are at historic lows, there is nowhere to go but up.

We are not saying the move we saw in the past few weeks represented a permanent turn in the market. (hopefully not) But eventually that turn will happen. Anyone who is planning a major purchase, from a car to a home, should take note of this fact and act accordingly. Rates are still great, but we don’t know for how long they will stay that way.

2010 is upon us. Are you ready?

The new year brings a few changes in the mortgage market.

The biggest change is the updated disclosure on the Good Faith Estimate.

It is a new multi page form that is designed to allow mortgage clients to easily see the costs and fees associated with the loan.

Certain bank fees and title escrow costs are not allowed to change by more than 10% +/-....

This is an effort to keep transparency of costs to the clients.

It also is supposed to keep shady mortgage brokers honest.

A more important rule to keep mortgage brokers honest is the new rule that they must be licensed, and register with the Nationwide Mortgage Licensing System Registry (NMLS+R).

This is a new agency that can monitor mortgage originators to be sure they are not performing any illegal activity, and to discipline them if needed.

FINALLY. This has been needed for the last 10 years and is part of the reason the industry has been so damaged.

Too many mortgage originators had too much freedom and greed.

I think this is all a step in the right direction.

In my 15 years of business, it is great to see some regulation in the mortgage industry.

Hopefully this, along with the tough market will continue to "weed" out the bad guys....

For 2009 the real estate market in California was up overall compared to 2008.

The market is very busy in the under 400,000 price range with many 1st time buyers and investors entering the market. The tax credit really helped too.

The over 400k range has been a bit slower but the drops in value in our area of Tustin Ranch, CA 92782 have not been to bad.

Most of the homes, townhomes, and condos appear to be selling quickly.

The prices are down, but not as bad as some other areas in Orange County.

Also the Government decided to extend the 1st time buyer credit until April, so move fast if you are buying.

They also added a "move up" credit for buyers wanting to upgrade to another home.

All good news.

2010 predictions I have seen:

-Continued improvement in the number of sales and possible gains in value.

-Rates to increase due to inflation pressures.

-Possible 2nd wave of foreclosures coming in the high end market to to Neg Am loan resets.

Who knows what the results will be.

All I know is there is a lot of activity out there.

Let me know what your thoughts are?

Also one of my resolutions for 2010 is to get my blog going.

Let me know what I can do to improve?

Thanks,

Chuck Davis

Mortgage pro in Tustin Ranch, all Orange County, and all Southern California.